First Gulf Bank Q3 profit rises 15pc
Abu Dhabi, October 22, 2012
First Gulf Bank, UAE's second largest lender by market value, posted a 15-per cent rise in third-quarter profit, helped mainly by higher income at its core businesses.
The lender, majority-owned by Abu Dhabi's ruling family, made a net profit of Dh1.05 billion ($287 million) for the three month period ending September 30, compared with Dh920.35 million in the prior-year period, a bank statement said.
Analysts polled by Reuters had estimated an average profit of Dh1.02 billion for the third quarter.
Profit for the first nine months of the year grew 12 per cent over the same period last year to Dh3.0 billion, FGB said.
Net interest and Islamic financing income grew to Dh1.40 billion in the third quarter, up 4 per cent over the prior year period.
Provisions for impairments, the money set aside to meet future loan losses, increased 5 per cent in the third quarter to Dh398.6 million. Total provisions in the nine month period stood at Dh1.22 billion, down 2 per cent compared with the same period last year.
FGB's loan book grew 9 per cent ending September to Dh114.4 billion compared with Dh104.7 billion in December 2011, while deposits grew 6 per cent to Dh109.8 billion in the same period.
Earlier this month, FGB sold $650 million in five-year bonds, becoming the first major Gulf borrower to issue since the traditional summer lull, taking advantage of healthy investor demand for regional debt.
FGB shares closed up 0.1 per cent on the Abu Dhabi bourse before the results. They are up 29-per cent year-to-date. – Reuters